AmEx American Stock Exchange.
Cyclical (investment) An investment whose value is influenced by an entire sector of the economy that is subject to periodic swings.
Dividend A periodic payment made, at a company's discretion, to stockholders.
Encryption The process of coding computer data so outsiders cannot read it.
Ex-dividend A stock that has passed its dividend date, meaning that the dividend has been declared, but not paid. It will be paid to the seller, not the buyer.
Inefficiencies Factors that cause the price of an investment to differ from its real value.
Price/earnings multiple (P/E ratio) The price of an investment divided by its earnings -- a measure of how many years it will take for an investment to repay its present price (if you ignore interest earnings).
Puts Options contracts that give the right to sell a fixed amount of an asset at a specified price and within a certain time limit; bought in expectation of a market drop.
S&P 500 (Standard & Poor's 500) a broad stock-market average composed of large, well-established company stocks.
Value investing The investment school which attempts to exploit market inefficiencies by buying stocks at prices less than their underlying value.
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